Construction of the prison commenced in 1986. It was completed in October 1989 and the first prisoners were received in January 1990. Barwon is the only Victorian maximum security prison located outside the Melbourne metropolitan area.

Barwon provides accommodation and services for maximum security mainstream prisoners including a 20-bed facility for high security prisoners and a 60-bed facility for maximum security protection prisoners. A campus of the Gordon Institute of TAFE operates at the prison providing a corrections education program.

The prison is split into many separate units including:

Acacia – a high security unit that is used to accommodate high risk prisoners

Banksia – a management unit for prisoners requiring close supervision or protection. All cells in this unit are single cells. The Banksia unit is separated into three smaller units, namely Coast, Heath, and Waratah.

Hoya – a segregation unit

Cassia – a mainstream unit which houses new prisoners

Diosma – a mainstream unit which accommodates prison workers

Eucalypt – a mainstream drug free unit used to house older, more settled long term prisoners

Grevillea – opened in April 2003, housing segregation prisoners

Illawarra – for medium security prisoners.

Melaleuca – a high security unit that is used to accommodate high risk prisoners

A 2012 art exhibition called The Barwon Interviews, comprising video footage of twelve inmates, was part of a Monash UniversityPhD project that was focused on examining prisoners adjusting to life inside Barwon Prison, their family struggles, and guilty consciences.[1]

In February 2012, visiting Barwon Prison to speak to indigenous inmates as part of a mentoring program, former AFL player Wayne Carey was found to have traces of cocaine on his clothing following a routine drug scan. Carey was informed that he could enter the prison if he submitted to a strip search. He declined and left the correctional facility.[2]